17 Comments

Summary:

Netflix ended the first quarter of 2009 with a bang, meeting the high end of its guidance with 10.3 million total subscribers and $394.1 million in quarterly revenue, the company announced today. Netflix added more than 920,000 net subscribers during the quarter, compared with 764,000 during […]

Netflix ended the first quarter of 2009 with a bang, meeting the high end of its guidance with 10.3 million total subscribers and $394.1 million in quarterly revenue, the company announced today.

Netflix added more than 920,000 net subscribers during the quarter, compared with 764,000 during the first quarter of 2008. Netflix added 600,000 of those new first-quarter 2009 subscribers in the first half of the quarter. CEO Reed Hastings said this front-loading of new subscribers fell in line historical patterns for the company.

Here are some of the highlights from the earnings call:

DVD: Hastings reinforced the company’s commitment to DVDs and Blu-ray and said he believes there is still a lot of growth in its rental by mail business. Rental kiosks and their $1 new release movies are expected to be Netflix’s No. 1 competition by the end of the year.

STREAMING: No specific stats on usage provided here, though Hastings said the streaming service was energizing the company’s growth. When asked about the possibility of a streaming-only subscription service, Hastings replied (rough transcription) “Streaming only is something we look at from time to time. When we talk to subscribers, they are focused on the hybrid [streaming/DVD] of what we do.” The company doesn’t believe that a streaming-only subscription would drive as big a shift away from DVDs as people think.

SOCIAL: Hastings said the future of video watching is not linear channels, it’s “closer to Facebook and YouTube” than it is to a standard grid view (presumably he means the way you scroll through TV channels now), and it will cater to the Internet generation.

PARTNERSHIPS: Netflix has a “tremendous number” of partnerships with consumer electronics manufacturers in the pipeline.

ONLINE VIDEO COMPETITION: Hastings said Netflix’s subscriptions, the ad-supported Hulu and pay-per-view from Apple and Amazon are like “three drops of water in an ocean,” given how much regular TV viewing people are consuming. Taking a rather Zen-like approach, it wasn’t as much about beating his competitors, but more about how the online video players right now are just trying to figure out what fraction of this giant ocean of TV viewing they can capture.

You’re subscribed! If you like, you can update your settings

  1. netflix on hdtv Thursday, April 23, 2009

    “The company doesn’t believe that a streaming-only subscription would drive as big a shift away from DVDs as people think”

    I quit renting movies by mail several years ago. Now I rent from Amazon Video on Demand and stream in real time. It works great and I forsee exponential growth. I don’t think a streaming-only subscription will work, but why doesn’t Netflix offer streaming a la carte?

    PCTVCables.com

  2. Linkpost | 4.24.2009 Friday, April 24, 2009

    [...] Netflix: Kiosks Will Be No.1 Competitor, Future of Video is Social – Now that Blockbuster’s on its last [...]

  3. On competition, NFLX may have the luxury of ignoring Hulu, AMZN, APPL on the demand side; indeed the attention pie is massive.
    I wonder about competition on the supply side, though. When it’s time to bid for rights to distribute content, I bet NFLX has to contend with those “three drops of water”.

  4. Chris great headline.

    Will netflix escape the licensing power of Youtube, I think not…

  5. KnightMayor Friday, May 8, 2009

    It sounds like you’re creating problems yourself by trying to solve this issue instead of looking at why their is a problem in the first place.

  6. El Futuro del Video es Social | SGP Blog Saturday, May 9, 2009

    [...] es toda una referencia en el mercado de la distribución de video, y así lo corroboran sus resultados del primer trimestre de 2009, donde con 920.000 nuevos suscriptores, supera con creces los 764.000 obtenidos en el primer [...]

  7. A Second Wind for Paid Content? Tuesday, May 12, 2009

    [...] Netflix has a very nice subscription streaming business, one that’s energizing its company as one of the only positive growth stories in this terrible economy. MLB has developed a very appealing (when it works) online system for live [...]

  8. DVD Tops for Entertainment; Online Delivery Small But Growing Wednesday, May 13, 2009

    [...] this year as more services pipe content directly to televisions. More Netflix-enabled devices are heading to market, Amazon offers HD rentals and purchases, and newcomers like ZillionTV will try to crack open the [...]

  9. Netflix Streaming Coming to Sony TV Sets Thursday, July 9, 2009

    [...] a big brand name like Sony. In April, Netflix CEO Reed Hastings said that his company had a “tremendous number” of hardware partnerships in the [...]

  10. Amazon and Netflix to Create Web Video Behemoth? Monday, July 13, 2009

    [...] content via Netflix plus newer content for purchase from Amazon. Netflix has in many ways been a lone bright spot among tech companies during the [...]

Comments have been disabled for this post